The Competitive Edge for Small Business Owners
Tax plan calendar for small business owners
The most effective tax plan starts with knowing the updated rules and doing a lot of small things correctly throughout year. Tax plan does not happen on yearend time and see your accountant, it is a daily fight through a whole year.
The flowing is year-round tax planning calendar which will help you to do your monthly tax planning by yourself.
- 1st – Record the odometer reading for your vehicle on the first day for allowable auto mobile deduction. Deducting vehicle costs can save your tax dollars greatly, but vehicle expense is an easy target for audits. To ensure the safety of your automobile cost deduction, you need to keep your km log, receipts related to your vehicle well from the first day of year.
- 15th – send payroll deduction of prior month to government. (Same for subsequent months)
- 30th– If you set up a spouse loan or make a prescribed rate loan to family trust, ensure the borrowers to pay interest by the end of the 30th to avoid attribution
- Have you paid a family member EI? If so, consider applying ruling to make them EI exempt
- 28th (Feb 29th in a leap year)-deadline to file T4, T4A, T4 Summary and T5 and T5 Summary to government.
- 1st-the deadline for making your RRSP contribution for last calendar year.
- 15th-the deadline for the first tax installment payment if required.
- 31st– the deadline to file a trust return and send the T3 slips to the beneficiary of the trust (this due date assumes a December 31 trust yearend)
- 31st-the deadline to file a partnership information return and send the T5013 to patterner (this due date assumes a December 31 partnership year-end).
- 31st– the deadline to file GST annual return for incorporated business (The due date assumes a Dec 31 as yearend date; GST filing is annually)
- 30th– the deadline to file personal tax return and pay you tax payable if you and your spouse do not carry incorporated business. Even if you and your spouse carry on unincorporated business, the deadline for personal tax payment is also April 30.
- Consider employing your kids in your business for summer time. To deduct wages, you pay to your child as payroll expense, you must pay your
- child in real payroll; your child must do
- necessary work to earning reasonable salary
15th– The deadline to file the personal tax return if you or your spouse carry on an unincorporated business.June
- 15th – The second tax installment due.
- 15th – The deadline to file GST return for individuals having business income with Dec 31, fiscal year-end)
- 30th-The deadline to file T5018 for construction industry business. (This due date assumes a Dec 31 as end reporting period.) The deadline for file T5018 is 6 months after fiscal year or calendar year.
- Review your installment option for the upcoming tax installment.
If your tax bill over 3000, you must pay installment. You have 3 different method to calculate your installment: non-calculation option, previous year option or current year option. Which option to use depends the change of your finical situation.
- If you have been charged penalty for late filing, consider use voluntary disclosure program (VDP) to waive it.
- 15th-the third tax installment is due.
- If you want to switch you GST calculation method from Direct Method to Quick Method, apply now for the upcoming year.
- Review your tax installment for the upcoming final tax installment.
- Review your compensation method for next year. How you pay yourself as a small business Owner
- salary, dividends or mix of them? (The due date assumes a Dec 31 as yearend date)
- Pay back the debit balance of shareholder loan account of previous year. (The due date assumes a Dec 31 as yearend date)
- Consider purchase major assets now instead of the early of next year. (The due date assumes a Dec 31 as yearend date)
- Consider delay to sell your assets to the early of the next year. (The due date assumes a Dec 31 as yearend date)
- 15th – the final tax installment is due.
- 31th- record your odometer for calculate allowable vehicle deduction.
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Qing (Jessica) Shi CPA
Tel: (403) 408-9765;E-mail:email@example.com